Chris Coleman will sign a contract extension this week, even though Wales are in danger of finishing bottom of their World Cup qualifying group after a humbling 2-1 defeat in Macedonia.

That result leaves Wales just one point ahead of the Group A basement side, Scotland, with three games remaining and means Coleman has a win ratio of 27% – significantly lower than those of his immediate predecessors, Gary Speed and John Toshack. But the Football Association of Wales is happy with the job he is doing and believes he is taking the team in the right direction.

His two-year contract extension has been agreed in principal, with the deal set to be signed after Tuesday's qualifier at home to Serbia.

Coleman said: "It's been agreed basically. We just wanted to get these two games out of the way. That was the most important thing. What has gone on with Gareth Bale is enough of a distraction, we didn't need anything else. But that has basically been agreed."

The mention of Bale was a reference to the forward joining Real Madrid for €100m (£85.2m). Coleman is adamant a bright future awaits Welsh football with talents such as Bale, Aaron Ramsey and Jonathan Williams.

"I can see where we are going," he said. "I can see the potential when everyone is ready. We are on the right road." He knows much attention will be lavished on Bale. "I accept what is coming with Gareth because he's a super player," Coleman said. "We have to accept what's coming when he's with us. But we can't let people use it as a tool against us."

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